Employment Contracts Act
If an employer or employee gives advance notice of cancellation of a employment contract later than provided by law or a collective agreement, the employee or the employer has the right to receive compensation to the extent to which he or she would have been entitled to upon adhering to the term for advance notice.
Failure by an employer to perform the obligation to inform and consult upon collective dismissals (within 30 days, dismissal of at least 5 employees in companies with up to 19 staff, of at least 10 employees in firms with 20-99 staff, at least 10% in firms with 100-299 staff or at least 30 employees in larger firms) or upon transfer of the undertaking is punishable by a fine of up to €1,300.
If an employer fails to comply with the requirements of legislation, employees can take the case to a labour dispute committee or to court.
Penalties can be either financial (see above) or the termination of employment contracts can be declared unlawful and the employer is then required to continue to fulfil the terms of the contract.
Thresholds are applicable in case of collective dismissal, while they do not apply upon transfer of enterprise.
Cost covered by
Involved actors other than national government